Page 303 - 2017 TSMC Annual Report

There were no purchases and disposals for assets classified as Level 3 for the years ended December 31, 2017 and 2016, respectively.
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
Forward exchange contracts and cross currency swap contracts are measured using forward exchange rates and the discounted curves that are derived from quoted market prices.
3) Fair value of financial instruments that are not measured at fair value
Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the parent company only financial statements that are not measured at fair value approximate their fair values.
December 31, 2017 Carrying
December 31, 2016 Carrying
Financial assets
Held-to-maturity financial assets
Commercial paper Corporate bonds
Financial liabilities
Measured at amortized cost Bonds payable
Fair value hierarchy
$
$
Amount
Fair Value
- $ - - -
Amount
8,628,176 2,819,362
Fair Value
$ 8,630,769 2,821,660
155,930,125
116,100,000 118,020,699
154,200,000
The table below sets out the fair value hierarchy for the Company’s assets and liabilities which are not required to measure at fair value:
Financial liabilities
Measured at amortized cost Bonds payable
Financial assets
Held-to-maturity securities Commercial paper Corporate bonds
Financial liabilities
Measured at amortized cost Bonds payable
December 31, 2017 Level 1 Level 2 Level 3
$ - $ 118,020,699 $ -
Total
$ 118,020,699
Total
8,630,769 2,821,660
11,452,429
Level 1 Level 2
$ - $ 8,630,769 $ - 2,821,660
$ - $ 11,452,429 $
$ - $ 155,930,125 $
Level 3
- -
-
$ $
December 31, 2016
- 155 -
- 155 -
-
$ 155,930,125